What is a short-term date?
A short date is a forward contract that expires in less than a year. A futures contract is an obligation involving two parties who agree on a fixed price to sell or buy an asset at a pre-determined date and time in the future.
In forex trading, a short-term futures contract usually involves trading a currency on a specified spot date that is earlier than the normal date. appointmentranging from one week to one month after the transaction date.
A short-term forward can be contrasted with long time attackers with a settlement date greater than one year, and up to 10 years or more into the future. Companies or financial institutions use these two types of contracts to hedge certain exchange risks.
Key points to remember
- A short-term forward contract is an over-the-counter derivative contract locking the price of an asset for future delivery, with maturities of less than one year.
- Short-term futures contracts are often used to hedge short-term risks, such as next month’s delivery of receivables or an anticipated need for oil in a few weeks.
- Due to their shorter maturities, these contracts tend to be less risky than long-term contracts.
How Short Term Futures Work
A forward currency contract is an agreement to exchange an underlying security or asset at a pr